HF 2958

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; changing certain 
  1.3             references to seasonal residential property; amending 
  1.4             Minnesota Statutes 1994, sections 273.11, subdivisions 
  1.5             1a and 13; 273.42, subdivision 2; 279.06, subdivision 
  1.6             1; and 281.17; Minnesota Statutes 1995 Supplement, 
  1.7             sections 273.124, subdivision 1; 273.13, subdivision 
  1.8             25; 274.01, subdivision 1; and 279.01, subdivision 4. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 273.11, 
  1.11  subdivision 1a, is amended to read: 
  1.12     Subd. 1a.  [LIMITED MARKET VALUE.] In the case of all 
  1.13  property classified as agricultural homestead or nonhomestead, 
  1.14  residential homestead or nonhomestead, or noncommercial seasonal 
  1.15  recreational residential, the assessor shall compare the value 
  1.16  with that determined in the preceding assessment.  The amount of 
  1.17  the increase entered in the current assessment shall not exceed 
  1.18  the greater of (1) ten percent of the value in the preceding 
  1.19  assessment, or (2) one-third of the difference between the 
  1.20  current assessment and the preceding assessment.  This 
  1.21  limitation shall not apply to increases in value due to 
  1.22  improvements.  For purposes of this subdivision, the term 
  1.23  "assessment" means the value prior to any exclusion under 
  1.24  subdivision 16. 
  1.25     The provisions of this subdivision shall be in effect only 
  1.26  for assessment years 1993 through 1997. 
  1.27     For purposes of the assessment/sales ratio study conducted 
  2.1   under section 124.2131, and the computation of state aids paid 
  2.2   under chapters 124, 124A, and 477A, market values and net tax 
  2.3   capacities determined under this subdivision and subdivision 16, 
  2.4   shall be used. 
  2.5      Sec. 2.  Minnesota Statutes 1994, section 273.11, 
  2.6   subdivision 13, is amended to read: 
  2.7      Subd. 13.  [VALUATION OF INCOME-PRODUCING PROPERTY.] 
  2.8   Beginning with the 1995 assessment, only accredited assessors or 
  2.9   senior accredited assessors or other licensed assessors who have 
  2.10  successfully completed at least two income-producing property 
  2.11  appraisal courses may value income-producing property for ad 
  2.12  valorem tax purposes.  "Income-producing property" as used in 
  2.13  this subdivision means the taxable property in class 3a and 3b 
  2.14  in section 273.13, subdivision 24; class 4a and 4c, except for 
  2.15  seasonal recreational residential property not used for 
  2.16  commercial purposes, and class 4d in section 273.13, subdivision 
  2.17  25; and class 5 in section 273.13, subdivision 31.  
  2.18  "Income-producing property" includes any property in class 4e in 
  2.19  section 273.13, subdivision 25, that would be income-producing 
  2.20  property under the definition in this subdivision if it were not 
  2.21  substandard.  "Income-producing property appraisal course" as 
  2.22  used in this subdivision means a course of study of 
  2.23  approximately 30 instructional hours, with a final comprehensive 
  2.24  test.  An assessor must successfully complete the final 
  2.25  examination for each of the two required courses.  The course 
  2.26  must be approved by the board of assessors. 
  2.27     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  2.28  273.124, subdivision 1, is amended to read: 
  2.29     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  2.30  that is occupied and used for the purposes of a homestead by its 
  2.31  owner, who must be a Minnesota resident, is a residential 
  2.32  homestead.  
  2.33     Agricultural land, as defined in section 273.13, 
  2.34  subdivision 23, that is occupied and used as a homestead by its 
  2.35  owner, who must be a Minnesota resident, is an agricultural 
  2.36  homestead. 
  3.1      Dates for establishment of a homestead and homestead 
  3.2   treatment provided to particular types of property are as 
  3.3   provided in this section.  
  3.4      Property of a trustee, beneficiary, or grantor of a trust 
  3.5   is not disqualified from receiving homestead benefits if the 
  3.6   homestead requirements under this chapter are satisfied. 
  3.7      The assessor shall require proof, as provided in 
  3.8   subdivision 13, of the facts upon which classification as a 
  3.9   homestead may be determined.  Notwithstanding any other law, the 
  3.10  assessor may at any time require a homestead application to be 
  3.11  filed in order to verify that any property classified as a 
  3.12  homestead continues to be eligible for homestead status.  
  3.13  Notwithstanding any other law to the contrary, the department of 
  3.14  revenue may, upon request from an assessor, verify whether an 
  3.15  individual who is requesting or receiving homestead 
  3.16  classification has filed a Minnesota income tax return as a 
  3.17  resident for the most recent taxable year for which the 
  3.18  information is available. 
  3.19     When there is a name change or a transfer of homestead 
  3.20  property, the assessor may reclassify the property in the next 
  3.21  assessment unless a homestead application is filed to verify 
  3.22  that the property continues to qualify for homestead 
  3.23  classification. 
  3.24     (b) For purposes of this section, homestead property shall 
  3.25  include property which is used for purposes of the homestead but 
  3.26  is separated from the homestead by a road, street, lot, 
  3.27  waterway, or other similar intervening property.  The term "used 
  3.28  for purposes of the homestead" shall include but not be limited 
  3.29  to uses for gardens, garages, or other outbuildings commonly 
  3.30  associated with a homestead, but shall not include vacant land 
  3.31  held primarily for future development.  In order to receive 
  3.32  homestead treatment for the noncontiguous property, the owner 
  3.33  shall apply for it to the assessor by July 1 of the year when 
  3.34  the treatment is initially sought.  After initial qualification 
  3.35  for the homestead treatment, additional applications for 
  3.36  subsequent years are not required. 
  4.1      (c) Residential real estate that is occupied and used for 
  4.2   purposes of a homestead by a relative of the owner is a 
  4.3   homestead but only to the extent of the homestead treatment that 
  4.4   would be provided if the related owner occupied the property.  
  4.5   For purposes of this paragraph and paragraph (f), "relative" 
  4.6   means a parent, stepparent, child, stepchild, grandparent, 
  4.7   grandchild, brother, sister, uncle, or aunt.  This relationship 
  4.8   may be by blood or marriage.  Property classified as seasonal 
  4.9   recreational residential property will not be reclassified as a 
  4.10  homestead unless it is occupied as a homestead by the owner; 
  4.11  this prohibition also applies to property that, in the absence 
  4.12  of this paragraph, would have been classified as seasonal 
  4.13  recreational residential property at the time when the residence 
  4.14  was constructed.  Neither the related occupant nor the owner of 
  4.15  the property may claim a property tax refund under chapter 290A 
  4.16  for a homestead occupied by a relative.  In the case of a 
  4.17  residence located on agricultural land, only the house, garage, 
  4.18  and immediately surrounding one acre of land shall be classified 
  4.19  as a homestead under this paragraph, except as provided in 
  4.20  paragraph (d). 
  4.21     (d) Agricultural property that is occupied and used for 
  4.22  purposes of a homestead by a relative of the owner, is a 
  4.23  homestead, only to the extent of the homestead treatment that 
  4.24  would be provided if the related owner occupied the property, 
  4.25  and only if all of the following criteria are met: 
  4.26     (1) the relative who is occupying the agricultural property 
  4.27  is a son, daughter, father, or mother of the owner of the 
  4.28  agricultural property or a son or daughter of the spouse of the 
  4.29  owner of the agricultural property, 
  4.30     (2) the owner of the agricultural property must be a 
  4.31  Minnesota resident, 
  4.32     (3) the owner of the agricultural property must not receive 
  4.33  homestead treatment on any other agricultural property in 
  4.34  Minnesota, and 
  4.35     (4) the owner of the agricultural property is limited to 
  4.36  only one agricultural homestead per family under this paragraph. 
  5.1      Neither the related occupant nor the owner of the property 
  5.2   may claim a property tax refund under chapter 290A for a 
  5.3   homestead occupied by a relative qualifying under this 
  5.4   paragraph.  For purposes of this paragraph, "agricultural 
  5.5   property" means the house, garage, other farm buildings and 
  5.6   structures, and agricultural land. 
  5.7      Application must be made to the assessor by the owner of 
  5.8   the agricultural property to receive homestead benefits under 
  5.9   this paragraph.  The assessor may require the necessary proof 
  5.10  that the requirements under this paragraph have been met. 
  5.11     (e) In the case of property owned by a property owner who 
  5.12  is married, the assessor must not deny homestead treatment in 
  5.13  whole or in part if only one of the spouses occupies the 
  5.14  property and the other spouse is absent due to:  (1) marriage 
  5.15  dissolution proceedings, (2) legal separation, (3) employment or 
  5.16  self-employment in another location, (4) residence in a nursing 
  5.17  home or boarding care facility, or (5) other personal 
  5.18  circumstances causing the spouses to live separately, not 
  5.19  including an intent to obtain two homestead classifications for 
  5.20  property tax purposes.  To qualify under clause (3), the 
  5.21  spouse's place of employment or self-employment must be at least 
  5.22  50 miles distant from the other spouse's place of employment, 
  5.23  and the homesteads must be at least 50 miles distant from each 
  5.24  other.  Homestead treatment, in whole or in part, shall not be 
  5.25  denied to the spouse of an owner if he or she previously 
  5.26  occupied the residence with the owner and the absence of the 
  5.27  owner is due to one of the exceptions provided in this paragraph.
  5.28     (f) If an individual is purchasing property with the intent 
  5.29  of claiming it as a homestead and is required by the terms of 
  5.30  the financing agreement to have a relative shown on the deed as 
  5.31  a coowner, the assessor shall allow a full homestead 
  5.32  classification.  This provision only applies to first-time 
  5.33  purchasers, whether married or single, or to a person who had 
  5.34  previously been married and is purchasing as a single individual 
  5.35  for the first time.  The application for homestead benefits must 
  5.36  be on a form prescribed by the commissioner and must contain the 
  6.1   data necessary for the assessor to determine if full homestead 
  6.2   benefits are warranted. 
  6.3      Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  6.4   273.13, subdivision 25, is amended to read: 
  6.5      Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  6.6   estate containing four or more units and used or held for use by 
  6.7   the owner or by the tenants or lessees of the owner as a 
  6.8   residence for rental periods of 30 days or more.  Class 4a also 
  6.9   includes hospitals licensed under sections 144.50 to 144.56, 
  6.10  other than hospitals exempt under section 272.02, and contiguous 
  6.11  property used for hospital purposes, without regard to whether 
  6.12  the property has been platted or subdivided.  Class 4a property 
  6.13  in a city with a population of 5,000 or less, that is (1) 
  6.14  located outside of the metropolitan area, as defined in section 
  6.15  473.121, subdivision 2, or outside any county contiguous to the 
  6.16  metropolitan area, and (2) whose city boundary is at least 15 
  6.17  miles from the boundary of any city with a population greater 
  6.18  than 5,000 has a class rate of 2.3 percent of market value for 
  6.19  taxes payable in 1996 and thereafter.  All other class 4a 
  6.20  property has a class rate of 3.4 percent of market value for 
  6.21  taxes payable in 1996 and thereafter.  For purposes of this 
  6.22  paragraph, population has the same meaning given in section 
  6.23  477A.011, subdivision 3. 
  6.24     (b) Class 4b includes: 
  6.25     (1) residential real estate containing less than four 
  6.26  units, other than seasonal residential, and recreational; 
  6.27     (2) manufactured homes not classified under any other 
  6.28  provision; 
  6.29     (3) a dwelling, garage, and surrounding one acre of 
  6.30  property on a nonhomestead farm classified under subdivision 23, 
  6.31  paragraph (b).  
  6.32     Class 4b property has a class rate of 2.8 percent of market 
  6.33  value for taxes payable in 1992, 2.5 percent of market value for 
  6.34  taxes payable in 1993, and 2.3 percent of market value for taxes 
  6.35  payable in 1994 and thereafter. 
  6.36     (c) Class 4c property includes: 
  7.1      (1) a structure that is:  
  7.2      (i) situated on real property that is used for housing for 
  7.3   the elderly or for low- and moderate-income families as defined 
  7.4   in Title II, as amended through December 31, 1990, of the 
  7.5   National Housing Act or the Minnesota housing finance agency law 
  7.6   of 1971, as amended, or rules promulgated by the agency and 
  7.7   financed by a direct federal loan or federally insured loan made 
  7.8   pursuant to Title II of the Act; or 
  7.9      (ii) situated on real property that is used for housing the 
  7.10  elderly or for low- and moderate-income families as defined by 
  7.11  the Minnesota housing finance agency law of 1971, as amended, or 
  7.12  rules adopted by the agency pursuant thereto and financed by a 
  7.13  loan made by the Minnesota housing finance agency pursuant to 
  7.14  the provisions of the act.  
  7.15     This clause applies only to property of a nonprofit or 
  7.16  limited dividend entity.  Property is classified as class 4c 
  7.17  under this clause for 15 years from the date of the completion 
  7.18  of the original construction or substantial rehabilitation, or 
  7.19  for the original term of the loan.  
  7.20     (2) a structure that is: 
  7.21     (i) situated upon real property that is used for housing 
  7.22  lower income families or elderly or handicapped persons, as 
  7.23  defined in section 8 of the United States Housing Act of 1937, 
  7.24  as amended; and 
  7.25     (ii) owned by an entity which has entered into a housing 
  7.26  assistance payments contract under section 8 which provides 
  7.27  assistance for 100 percent of the dwelling units in the 
  7.28  structure, other than dwelling units intended for management or 
  7.29  maintenance personnel.  Property is classified as class 4c under 
  7.30  this clause for the term of the housing assistance payments 
  7.31  contract, including all renewals, or for the term of its 
  7.32  permanent financing, whichever is shorter; and 
  7.33     (3) a qualified low-income building as defined in section 
  7.34  42(c)(2) of the Internal Revenue Code of 1986, as amended 
  7.35  through December 31, 1990, that (i) receives a low-income 
  7.36  housing credit under section 42 of the Internal Revenue Code of 
  8.1   1986, as amended through December 31, 1990; or (ii) meets the 
  8.2   requirements of that section and receives public financing, 
  8.3   except financing provided under sections 469.174 to 469.179, 
  8.4   which contains terms restricting the rents; or (iii) meets the 
  8.5   requirements of section 273.1317.  Classification pursuant to 
  8.6   this clause is limited to a term of 15 years.  The public 
  8.7   financing received must be from at least one of the following 
  8.8   sources:  government issued bonds exempt from taxes under 
  8.9   section 103 of the Internal Revenue Code of 1986, as amended 
  8.10  through December 31, 1993, the proceeds of which are used for 
  8.11  the acquisition or rehabilitation of the building; programs 
  8.12  under section 221(d)(3), 202, or 236, of Title II of the 
  8.13  National Housing Act; rental housing program funds under Section 
  8.14  8 of the United States Housing Act of 1937 or the market rate 
  8.15  family graduated payment mortgage program funds administered by 
  8.16  the Minnesota housing finance agency that are used for the 
  8.17  acquisition or rehabilitation of the building; public financing 
  8.18  provided by a local government used for the acquisition or 
  8.19  rehabilitation of the building, including grants or loans from 
  8.20  federal community development block grants, HOME block grants, 
  8.21  or residential rental bonds issued under chapter 474A; or other 
  8.22  rental housing program funds provided by the Minnesota housing 
  8.23  finance agency for the acquisition or rehabilitation of the 
  8.24  building. 
  8.25     For all properties described in clauses (1), (2), and (3) 
  8.26  and in paragraph (d), the market value determined by the 
  8.27  assessor must be based on the normal approach to value using 
  8.28  normal unrestricted rents unless the owner of the property 
  8.29  elects to have the property assessed under Laws 1991, chapter 
  8.30  291, article 1, section 55.  If the owner of the property elects 
  8.31  to have the market value determined on the basis of the actual 
  8.32  restricted rents, as provided in Laws 1991, chapter 291, article 
  8.33  1, section 55, the property will be assessed at the rate 
  8.34  provided for class 4a or class 4b property, as appropriate.  
  8.35  Properties described in clauses (1)(ii), (3), and (4) may apply 
  8.36  to the assessor for valuation under Laws 1991, chapter 291, 
  9.1   article 1, section 55.  The land on which these structures are 
  9.2   situated has the class rate given in paragraph (b) if the 
  9.3   structure contains fewer than four units, and the class rate 
  9.4   given in paragraph (a) if the structure contains four or more 
  9.5   units.  This clause applies only to the property of a nonprofit 
  9.6   or limited dividend entity.  
  9.7      (4) a parcel of land, not to exceed one acre, and its 
  9.8   improvements or a parcel of unimproved land, not to exceed one 
  9.9   acre, if it is owned by a neighborhood real estate trust and at 
  9.10  least 60 percent of the dwelling units, if any, on all land 
  9.11  owned by the trust are leased to or occupied by lower income 
  9.12  families or individuals.  This clause does not apply to any 
  9.13  portion of the land or improvements used for nonresidential 
  9.14  purposes.  For purposes of this clause, a lower income family is 
  9.15  a family with an income that does not exceed 65 percent of the 
  9.16  median family income for the area, and a lower income individual 
  9.17  is an individual whose income does not exceed 65 percent of the 
  9.18  median individual income for the area, as determined by the 
  9.19  United States Secretary of Housing and Urban Development.  For 
  9.20  purposes of this clause, "neighborhood real estate trust" means 
  9.21  an entity which is certified by the governing body of the 
  9.22  municipality in which it is located to have the following 
  9.23  characteristics: 
  9.24     (a) it is a nonprofit corporation organized under chapter 
  9.25  317A; 
  9.26     (b) it has as its principal purpose providing housing for 
  9.27  lower income families in a specific geographic community 
  9.28  designated in its articles or bylaws; 
  9.29     (c) it limits membership with voting rights to residents of 
  9.30  the designated community; and 
  9.31     (d) it has a board of directors consisting of at least 
  9.32  seven directors, 60 percent of whom are members with voting 
  9.33  rights and, to the extent feasible, 25 percent of whom are 
  9.34  elected by resident members of buildings owned by the trust; and 
  9.35     (5) except as provided in subdivision 22, paragraph (c), 
  9.36  real property devoted to temporary and seasonal residential 
 10.1   occupancy for recreation purposes, including real property 
 10.2   devoted to temporary and seasonal residential occupancy for 
 10.3   recreation purposes and not devoted to commercial purposes for 
 10.4   more than 250 days in the year preceding the year of 
 10.5   assessment.  For purposes of this clause, property is devoted to 
 10.6   a commercial purpose on a specific day if any portion of the 
 10.7   property is used for residential occupancy, and a fee is charged 
 10.8   for residential occupancy.  Class 4c also includes commercial 
 10.9   use real property used exclusively for recreational purposes in 
 10.10  conjunction with class 4c property devoted to temporary and 
 10.11  seasonal residential occupancy for recreational purposes, up to 
 10.12  a total of two acres, provided the property is not devoted to 
 10.13  commercial recreational use for more than 250 days in the year 
 10.14  preceding the year of assessment and is located within two miles 
 10.15  of the class 4c property with which it is used.  Class 4c 
 10.16  property classified in this clause also includes the remainder 
 10.17  of class 1c resorts.  Owners of real property devoted to 
 10.18  temporary and seasonal residential occupancy for recreation 
 10.19  purposes and all or a portion of which was devoted to commercial 
 10.20  purposes for not more than 250 days in the year preceding the 
 10.21  year of assessment desiring classification as class 1c or 4c, 
 10.22  must submit a declaration to the assessor designating the cabins 
 10.23  or units occupied for 250 days or less in the year preceding the 
 10.24  year of assessment by January 15 of the assessment year.  Those 
 10.25  cabins or units and a proportionate share of the land on which 
 10.26  they are located will be designated class 1c or 4c as otherwise 
 10.27  provided.  The remainder of the cabins or units and a 
 10.28  proportionate share of the land on which they are located will 
 10.29  be designated as class 3a.  The first $100,000 of the market 
 10.30  value of the remainder of the cabins or units and a 
 10.31  proportionate share of the land on which they are located shall 
 10.32  have a class rate of three percent.  The owner of property 
 10.33  desiring designation as class 1c or 4c property must provide 
 10.34  guest registers or other records demonstrating that the units 
 10.35  for which class 1c or 4c designation is sought were not occupied 
 10.36  for more than 250 days in the year preceding the assessment if 
 11.1   so requested.  The portion of a property operated as a (1) 
 11.2   restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 11.3   facility operated on a commercial basis not directly related to 
 11.4   temporary and seasonal residential occupancy for recreation 
 11.5   purposes shall not qualify for class 1c or 4c; 
 11.6      (6) real property up to a maximum of one acre of land owned 
 11.7   by a nonprofit community service oriented organization; provided 
 11.8   that the property is not used for a revenue-producing activity 
 11.9   for more than six days in the calendar year preceding the year 
 11.10  of assessment and the property is not used for residential 
 11.11  purposes on either a temporary or permanent basis.  For purposes 
 11.12  of this clause, a "nonprofit community service oriented 
 11.13  organization" means any corporation, society, association, 
 11.14  foundation, or institution organized and operated exclusively 
 11.15  for charitable, religious, fraternal, civic, or educational 
 11.16  purposes, and which is exempt from federal income taxation 
 11.17  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 11.18  Revenue Code of 1986, as amended through December 31, 1990.  For 
 11.19  purposes of this clause, "revenue-producing activities" shall 
 11.20  include but not be limited to property or that portion of the 
 11.21  property that is used as an on-sale intoxicating liquor or 3.2 
 11.22  percent malt liquor establishment licensed under chapter 340A, a 
 11.23  restaurant open to the public, bowling alley, a retail store, 
 11.24  gambling conducted by organizations licensed under chapter 349, 
 11.25  an insurance business, or office or other space leased or rented 
 11.26  to a lessee who conducts a for-profit enterprise on the 
 11.27  premises.  Any portion of the property which is used for 
 11.28  revenue-producing activities for more than six days in the 
 11.29  calendar year preceding the year of assessment shall be assessed 
 11.30  as class 3a.  The use of the property for social events open 
 11.31  exclusively to members and their guests for periods of less than 
 11.32  24 hours, when an admission is not charged nor any revenues are 
 11.33  received by the organization shall not be considered a 
 11.34  revenue-producing activity; 
 11.35     (7) post-secondary student housing of not more than one 
 11.36  acre of land that is owned by a nonprofit corporation organized 
 12.1   under chapter 317A and is used exclusively by a student 
 12.2   cooperative, sorority, or fraternity for on-campus housing or 
 12.3   housing located within two miles of the border of a college 
 12.4   campus; and 
 12.5      (8) manufactured home parks as defined in section 327.14, 
 12.6   subdivision 3. 
 12.7      Class 4c property has a class rate of 2.3 percent of market 
 12.8   value, except that (i) for each parcel of seasonal residential 
 12.9   recreational property not used for commercial purposes under 
 12.10  clause (5) the first $72,000 of market value on each parcel has 
 12.11  a class rate of 1.9 percent for taxes payable in 1997 and 1.8 
 12.12  percent for taxes payable in 1998 and thereafter, and the market 
 12.13  value of each parcel that exceeds $72,000 has a class rate of 
 12.14  2.5 percent, and (ii) manufactured home parks assessed under 
 12.15  clause (8) have a class rate of two percent for taxes payable in 
 12.16  1996, and thereafter.  
 12.17     (d) Class 4d property includes: 
 12.18     (1) a structure that is: 
 12.19     (i) situated on real property that is used for housing for 
 12.20  the elderly or for low and moderate income families as defined 
 12.21  by the Farmers Home Administration; 
 12.22     (ii) located in a municipality of less than 10,000 
 12.23  population; and 
 12.24     (iii) financed by a direct loan or insured loan from the 
 12.25  Farmers Home Administration.  Property is classified under this 
 12.26  clause for 15 years from the date of the completion of the 
 12.27  original construction or for the original term of the loan.  
 12.28     The class rates in paragraph (c), clauses (1), (2), and (3) 
 12.29  and this clause apply to the properties described in them, only 
 12.30  in proportion to occupancy of the structure by elderly or 
 12.31  handicapped persons or low and moderate income families as 
 12.32  defined in the applicable laws unless construction of the 
 12.33  structure had been commenced prior to January 1, 1984; or the 
 12.34  project had been approved by the governing body of the 
 12.35  municipality in which it is located prior to June 30, 1983; or 
 12.36  financing of the project had been approved by a federal or state 
 13.1   agency prior to June 30, 1983.  For those properties, 4c or 4d 
 13.2   classification is available only for those units meeting the 
 13.3   requirements of section 273.1318. 
 13.4      Classification under this clause is only available to 
 13.5   property of a nonprofit or limited dividend entity. 
 13.6      In the case of a structure financed or refinanced under any 
 13.7   federal or state mortgage insurance or direct loan program 
 13.8   exclusively for housing for the elderly or for housing for the 
 13.9   handicapped, a unit shall be considered occupied so long as it 
 13.10  is actually occupied by an elderly or handicapped person or, if 
 13.11  vacant, is held for rental to an elderly or handicapped person. 
 13.12     (2) For taxes payable in 1992, 1993, and 1994, only, 
 13.13  buildings and appurtenances, together with the land upon which 
 13.14  they are located, leased by the occupant under the community 
 13.15  lending model lease-purchase mortgage loan program administered 
 13.16  by the Federal National Mortgage Association, provided the 
 13.17  occupant's income is no greater than 60 percent of the county or 
 13.18  area median income, adjusted for family size and the building 
 13.19  consists of existing single family or duplex housing.  The lease 
 13.20  agreement must provide for a portion of the lease payment to be 
 13.21  escrowed as a nonrefundable down payment on the housing.  To 
 13.22  qualify under this clause, the taxpayer must apply to the county 
 13.23  assessor by May 30 of each year.  The application must be 
 13.24  accompanied by an affidavit or other proof required by the 
 13.25  assessor to determine qualification under this clause. 
 13.26     (3) Qualifying buildings and appurtenances, together with 
 13.27  the land upon which they are located, leased for a period of up 
 13.28  to five years by the occupant under a lease-purchase program 
 13.29  administered by the Minnesota housing finance agency or a 
 13.30  housing and redevelopment authority authorized under sections 
 13.31  469.001 to 469.047, provided the occupant's income is no greater 
 13.32  than 80 percent of the county or area median income, adjusted 
 13.33  for family size, and the building consists of two or less 
 13.34  dwelling units.  The lease agreement must provide for a portion 
 13.35  of the lease payment to be escrowed as a nonrefundable down 
 13.36  payment on the housing.  The administering agency shall verify 
 14.1   the occupants income eligibility and certify to the county 
 14.2   assessor that the occupant meets the income criteria under this 
 14.3   paragraph.  To qualify under this clause, the taxpayer must 
 14.4   apply to the county assessor by May 30 of each year.  For 
 14.5   purposes of this section, "qualifying buildings and 
 14.6   appurtenances" shall be defined as one or two unit residential 
 14.7   buildings which are unoccupied and have been abandoned and 
 14.8   boarded for at least six months. 
 14.9      Class 4d property has a class rate of two percent of market 
 14.10  value except that property classified under clause (3), shall 
 14.11  have the same class rate as class 1a property. 
 14.12     (e) Residential rental property that would otherwise be 
 14.13  assessed as class 4 property under paragraph (a); paragraph (b), 
 14.14  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 14.15  (4), is assessed at the class rate applicable to it under 
 14.16  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 14.17  substandard building under section 273.1316.  Residential rental 
 14.18  property that would otherwise be assessed as class 4 property 
 14.19  under paragraph (d) is assessed at 2.3 percent of market value 
 14.20  if it is found to be a substandard building under section 
 14.21  273.1316. 
 14.22     Sec. 5.  Minnesota Statutes 1994, section 273.42, 
 14.23  subdivision 2, is amended to read: 
 14.24     Subd. 2.  Owners of land that is an agricultural or 
 14.25  nonagricultural homestead, nonhomestead agricultural land, 
 14.26  rental residential property, and both commercial seasonal 
 14.27  residential recreational property, and noncommercial seasonal 
 14.28  residential recreational property, as those terms are defined in 
 14.29  section 273.13 listed on records of the county auditor or county 
 14.30  treasurer over which runs a high voltage transmission line as 
 14.31  defined in section 116C.52, subdivision 3, except a high voltage 
 14.32  transmission line the construction of which was commenced prior 
 14.33  to July 1, 1974, shall receive a property tax credit in an 
 14.34  amount determined by multiplying a fraction, the numerator of 
 14.35  which is the length of high voltage transmission line which runs 
 14.36  over that parcel and the denominator of which is the total 
 15.1   length of that particular line running over all property within 
 15.2   the city or township by ten percent of the transmission line tax 
 15.3   revenue derived from the tax on that portion of the line within 
 15.4   the city or township pursuant to section 273.36.  In the case of 
 15.5   property owners in unorganized townships, the property tax 
 15.6   credit shall be determined by multiplying a fraction, the 
 15.7   numerator of which is the length of the qualifying high voltage 
 15.8   transmission line which runs over the parcel and the denominator 
 15.9   of which is the total length of the qualifying high voltage 
 15.10  transmission line running over all property within all the 
 15.11  unorganized townships within the county, by the total utility 
 15.12  property tax credit fund amount available within the county for 
 15.13  that year pursuant to subdivision 1.  Where a right-of-way width 
 15.14  is shared by more than one property owner, the numerator shall 
 15.15  be adjusted by multiplying the length of line on the parcel by 
 15.16  the proportion of the total width on the parcel owned by that 
 15.17  property owner.  The amount of credit for which the property 
 15.18  qualifies shall not exceed 20 percent of the total gross tax on 
 15.19  the parcel prior to deduction of the state paid agricultural 
 15.20  credit and the state paid homestead credit, provided that, if 
 15.21  the property containing the right-of-way is included in a parcel 
 15.22  which exceeds 40 acres, the total gross tax on the parcel shall 
 15.23  be multiplied by a fraction, the numerator of which is the sum 
 15.24  of the number of acres in each quarter-quarter section or 
 15.25  portion thereof which contains a right-of-way and the 
 15.26  denominator of which is the total number of acres in the parcel 
 15.27  set forth on the tax statement, and the maximum credit shall be 
 15.28  20 percent of the product of that computation, prior to 
 15.29  deduction of those credits.  The auditor of the county in which 
 15.30  the affected parcel is located shall calculate the amount of the 
 15.31  credit due for each parcel and transmit that information to the 
 15.32  county treasurer.  The county auditor, in computing the credit 
 15.33  received pursuant to section 273.135, shall reduce the gross tax 
 15.34  by the amount of the credit received pursuant to this section, 
 15.35  unless the amount of the credit would be less than $10. 
 15.36     If, after the county auditor has computed the credit to 
 16.1   those qualifying property owners in unorganized townships, there 
 16.2   is money remaining in the utility property tax credit fund, then 
 16.3   that excess amount in the fund shall be returned to the general 
 16.4   school fund of the county. 
 16.5      Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 16.6   274.01, subdivision 1, is amended to read: 
 16.7      Subdivision 1.  [ORDINARY BOARD; MEETINGS, DEADLINES, 
 16.8   GRIEVANCES.] (a) The town board of a town, or the council or 
 16.9   other governing body of a city, is the board of review except in 
 16.10  cities whose charters provide for a board of equalization.  The 
 16.11  county assessor shall fix a day and time when the board or the 
 16.12  board of equalization shall meet in the assessment districts of 
 16.13  the county.  On or before February 15 of each year the assessor 
 16.14  shall give written notice of the time to the city or town 
 16.15  clerk.  Notwithstanding the provisions of any charter to the 
 16.16  contrary, the meetings must be held between April 1 and May 31 
 16.17  each year.  The clerk shall give published and posted notice of 
 16.18  the meeting at least ten days before the date of the meeting.  
 16.19  If in any county, at least 25 percent of the total net tax 
 16.20  capacity of a city or town is noncommercial seasonal residential 
 16.21  recreational property classified under section 273.13, 
 16.22  subdivision 25, the county must hold two countywide 
 16.23  informational meetings on Saturdays.  The meetings will allow 
 16.24  noncommercial seasonal residential recreational taxpayers to 
 16.25  discuss their property valuation with the appropriate assessment 
 16.26  staff.  These Saturday informational meetings must be scheduled 
 16.27  to allow the owner of the noncommercial seasonal residential 
 16.28  recreational property the opportunity to attend one of the 
 16.29  meetings prior to the scheduled board of review for their city 
 16.30  or town.  The Saturday meeting dates must be contained on the 
 16.31  notice of valuation of real property under section 273.121.  The 
 16.32  board shall meet at the office of the clerk to review the 
 16.33  assessment and classification of property in the town or city.  
 16.34  No changes in valuation or classification which are intended to 
 16.35  correct errors in judgment by the county assessor may be made by 
 16.36  the county assessor after the board of review or the county 
 17.1   board of equalization has adjourned; however, corrections of 
 17.2   errors that are merely clerical in nature or changes that extend 
 17.3   homestead treatment to property are permitted after adjournment 
 17.4   until the tax extension date for that assessment year.  The 
 17.5   changes must be fully documented and maintained in the 
 17.6   assessor's office and must be available for review by any 
 17.7   person.  A copy of the changes made during this period must be 
 17.8   sent to the county board no later than December 31 of the 
 17.9   assessment year.  
 17.10     (b) The board shall determine whether the taxable property 
 17.11  in the town or city has been properly placed on the list and 
 17.12  properly valued by the assessor.  If real or personal property 
 17.13  has been omitted, the board shall place it on the list with its 
 17.14  market value, and correct the assessment so that each tract or 
 17.15  lot of real property, and each article, parcel, or class of 
 17.16  personal property, is entered on the assessment list at its 
 17.17  market value.  No assessment of the property of any person may 
 17.18  be raised unless the person has been duly notified of the intent 
 17.19  of the board to do so.  On application of any person feeling 
 17.20  aggrieved, the board shall review the assessment or 
 17.21  classification, or both, and correct it as appears just.  
 17.22     (c) A local board of review may reduce assessments upon 
 17.23  petition of the taxpayer but the total reductions must not 
 17.24  reduce the aggregate assessment made by the county assessor by 
 17.25  more than one percent.  If the total reductions would lower the 
 17.26  aggregate assessments made by the county assessor by more than 
 17.27  one percent, none of the adjustments may be made.  The assessor 
 17.28  shall correct any clerical errors or double assessments 
 17.29  discovered by the board of review without regard to the one 
 17.30  percent limitation.  
 17.31     (d) A majority of the members may act at the meeting, and 
 17.32  adjourn from day to day until they finish hearing the cases 
 17.33  presented.  The assessor shall attend, with the assessment books 
 17.34  and papers, and take part in the proceedings, but must not 
 17.35  vote.  The county assessor, or an assistant delegated by the 
 17.36  county assessor shall attend the meetings.  The board shall list 
 18.1   separately, on a form appended to the assessment book, all 
 18.2   omitted property added to the list by the board and all items of 
 18.3   property increased or decreased, with the market value of each 
 18.4   item of property, added or changed by the board, placed opposite 
 18.5   the item.  The county assessor shall enter all changes made by 
 18.6   the board in the assessment book.  
 18.7      (e) If a person fails to appear in person, by counsel, or 
 18.8   by written communication before the board after being duly 
 18.9   notified of the board's intent to raise the assessment of the 
 18.10  property, or if a person feeling aggrieved by an assessment or 
 18.11  classification fails to apply for a review of the assessment or 
 18.12  classification, the person may not appear before the county 
 18.13  board of equalization for a review of the assessment or 
 18.14  classification.  This paragraph does not apply if an assessment 
 18.15  was made after the board meeting, as provided in section 273.01, 
 18.16  or if the person can establish not having received notice of 
 18.17  market value at least five days before the local board of review 
 18.18  meeting.  
 18.19     (f) The board of review or the board of equalization must 
 18.20  complete its work and adjourn within 20 days from the time of 
 18.21  convening stated in the notice of the clerk, unless a longer 
 18.22  period is approved by the commissioner of revenue.  No action 
 18.23  taken after that date is valid.  All complaints about an 
 18.24  assessment or classification made after the meeting of the board 
 18.25  must be heard and determined by the county board of 
 18.26  equalization.  A nonresident may, at any time, before the 
 18.27  meeting of the board of review file written objections to an 
 18.28  assessment or classification with the county assessor.  The 
 18.29  objections must be presented to the board of review at its 
 18.30  meeting by the county assessor for its consideration. 
 18.31     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 18.32  279.01, subdivision 4, is amended to read: 
 18.33     Subd. 4.  [NONCOMMERCIAL SEASONAL RESIDENTIAL RECREATIONAL 
 18.34  PROPERTY.] In the case of class 4c seasonal 
 18.35  residential recreational property not used for commercial 
 18.36  purposes, penalties shall accrue and be charged on unpaid taxes 
 19.1   at the times and at the rates provided in subdivision 1 for 
 19.2   homestead property. 
 19.3      Sec. 8.  Minnesota Statutes 1994, section 279.06, 
 19.4   subdivision 1, is amended to read: 
 19.5      Subdivision 1.  [LIST AND NOTICE.] Within five days after 
 19.6   the filing of such list, the court administrator shall return a 
 19.7   copy thereof to the county auditor, with a notice prepared and 
 19.8   signed by the court administrator, and attached thereto, which 
 19.9   may be substantially in the following form: 
 19.10     State of Minnesota        )                            
 19.11                               ) ss.                        
 19.12     County of ............... )                            
 19.13                                              District Court
 19.14                               .......... Judicial District.
 19.15     The state of Minnesota, to all persons, companies, or 
 19.16  corporations who have or claim any estate, right, title, or 
 19.17  interest in, claim to, or lien upon, any of the several parcels 
 19.18  of land described in the list hereto attached: 
 19.19     The list of taxes and penalties on real property for the 
 19.20  county of ............................... remaining delinquent 
 19.21  on the first Monday in January, 19....., has been filed in the 
 19.22  office of the court administrator of the district court of said 
 19.23  county, of which that hereto attached is a copy.  Therefore, 
 19.24  you, and each of you, are hereby required to file in the office 
 19.25  of said court administrator, on or before the 20th day after the 
 19.26  publication of this notice and list, your answer, in writing, 
 19.27  setting forth any objection or defense you may have to the 
 19.28  taxes, or any part thereof, upon any parcel of land described in 
 19.29  the list, in, to, or on which you have or claim any estate, 
 19.30  right, title, interest, claim, or lien, and, in default thereof, 
 19.31  judgment will be entered against such parcel of land for the 
 19.32  taxes on such list appearing against it, and for all penalties, 
 19.33  interest, and costs.  Based upon said judgment, the land shall 
 19.34  be sold to the state of Minnesota on the second Monday in May, 
 19.35  19...  The period of redemption for all lands sold to the state 
 19.36  at a tax judgment sale shall be three years from the date of 
 20.1   sale to the state of Minnesota if the land is within an 
 20.2   incorporated area unless it is: 
 20.3      (a) nonagricultural homesteaded land as defined in section 
 20.4   273.13, subdivision 22; 
 20.5      (b) homesteaded agricultural land as defined in section 
 20.6   273.13, subdivision 23, paragraph (a); or 
 20.7      (c) noncommercial seasonal residential property and 
 20.8   commercial seasonal residential recreational land as defined in 
 20.9   section 273.13, subdivisions 22, paragraph (c), and 25, 
 20.10  paragraph (c), clause (5), in which event the period of 
 20.11  redemption is five years from the date of sale to the state of 
 20.12  Minnesota.  
 20.13     The period of redemption for all other lands sold to the 
 20.14  state at a tax judgment sale shall be five years from the date 
 20.15  of sale.  
 20.16     Inquiries as to the proceedings set forth above can be made 
 20.17  to the county auditor of ..... county whose address is ..... .  
 20.18      (Signed) ............................................., 
 20.19      Court Administrator of the District Court of the County 
 20.20      of .................................................... 
 20.21      (Here insert list.) 
 20.22     The list referred to in the notice shall be substantially 
 20.23  in the following form: 
 20.24     List of real property for the county of 
 20.25  ......................., on which taxes remain delinquent on the 
 20.26  first Monday in January, 19...: 
 20.27                        Town of (Fairfield), 
 20.28                     Township (40), Range (20), 
 20.29   Names (and 
 20.30   Current Filed 
 20.31   Addresses) for 
 20.32   the Taxpayers 
 20.33   and Fee Owners 
 20.34   and in Addition 
 20.35   Those Parties 
 20.36   Who Have Filed 
 21.1    Their Addresses                            Tax 
 21.2    Pursuant to     Subdivision of            Parcel   Total Tax 
 21.3    section 276.041    Section       Section  Number  and Penalty
 21.4                                                        $ cts.
 21.5    John Jones  S.E. 1/4 of S.W. 1/4    10    23101       2.20  
 21.6    (825 Fremont  
 21.7    Fairfield, MN 
 21.8    55000) 
 21.9    Bruce Smith  That part of N.E. 1/4 
 21.10   (2059 Hand   of S.W. 1/4 desc. as 
 21.11   Fairfield,   follows:  Beg. at the 
 21.12   MN 55000)    S.E. corner of said 
 21.13   and          N.E. 1/4 of S.W. 1/4;  
 21.14   Fairfield    thence N. along the E.  
 21.15   State Bank   line of said N.E. 1/4 
 21.16   (100 Main    of S.W. 1/4 a distance 
 21.17   Street       of 600 ft.; thence W. 
 21.18   Fairfield,   parallel with the S. 
 21.19   MN 55000)    line of said N.E. 1/4 
 21.20                of S.W. 1/4 a distance 
 21.21                of 600 ft.; thence S. 
 21.22                parallel with said E. 
 21.23                line a distance of 600 
 21.24                ft. to S. line of said 
 21.25                N.E. 1/4 of S.W. 1/4;
 21.26                thence E. along said S. 
 21.27                line a distance of 600 
 21.28                ft. to the point of 
 21.29                beg. ...............    21    33211       3.15  
 21.30     As to platted property, the form of heading shall conform 
 21.31  to circumstances and be substantially in the following form:  
 21.32                        City of (Smithtown) 
 21.33                  Brown's Addition, or Subdivision 
 21.34   Names (and 
 21.35   Current Filed 
 21.36   Addresses) for 
 22.1    the Taxpayers 
 22.2    and Fee Owners 
 22.3    and in Addition 
 22.4    Those Parties 
 22.5    Who have Filed 
 22.6    Their Addresses                         Tax 
 22.7    Pursuant to                            Parcel      Total Tax 
 22.8    section 276.041     Lot     Block      Number     and Penalty
 22.9                                                        $ cts 
 22.10   John Jones           15         9      58243          2.20 
 22.11   (825 Fremont 
 22.12   Fairfield, 
 22.13   MN 55000) 
 22.14   Bruce Smith          16         9      58244          3.15 
 22.15   (2059 Hand 
 22.16   Fairfield, 
 22.17   MN 55000) 
 22.18   and 
 22.19   Fairfield 
 22.20   State Bank 
 22.21   (100 Main Street 
 22.22   Fairfield, 
 22.23   MN 55000) 
 22.24     The names, descriptions, and figures employed in 
 22.25  parentheses in the above forms are merely for purposes of 
 22.26  illustration. 
 22.27     The name of the town, township, range or city, and addition 
 22.28  or subdivision, as the case may be, shall be repeated at the 
 22.29  head of each column of the printed lists as brought forward from 
 22.30  the preceding column.  
 22.31     Errors in the list shall not be deemed to be a material 
 22.32  defect to affect the validity of the judgment and sale. 
 22.33     Sec. 9.  Minnesota Statutes 1994, section 281.17, is 
 22.34  amended to read: 
 22.35     281.17 [PERIOD FOR REDEMPTION.] 
 22.36     The period of redemption for all lands sold to the state at 
 23.1   a tax judgment sale shall be three years from the date of sale 
 23.2   to the state of Minnesota if the land is within an incorporated 
 23.3   area unless it is:  (a) nonagricultural homesteaded land as 
 23.4   defined in section 273.13, subdivision 22; (b) homesteaded 
 23.5   agricultural land as defined in section 273.13, subdivision 23, 
 23.6   paragraph (a); or (c) noncommercial seasonal residential 
 23.7   property and commercial seasonal residential recreational land 
 23.8   as defined in section 273.13, subdivision 22, paragraph (c), or 
 23.9   25, paragraph (c), clause (5), for which the period of 
 23.10  redemption is five years from the date of sale to the state of 
 23.11  Minnesota. 
 23.12     The period of redemption for homesteaded lands as defined 
 23.13  in section 273.13, subdivision 22, located in a targeted 
 23.14  neighborhood as defined in Laws 1987, chapter 386, article 6, 
 23.15  section 4, and sold to the state at a tax judgment sale is three 
 23.16  years from the date of sale.  The period of redemption for all 
 23.17  lands located in a targeted neighborhood as defined in Laws 
 23.18  1987, chapter 386, article 6, section 4, except (1) homesteaded 
 23.19  lands as defined in section 273.13, subdivision 22, and (2) for 
 23.20  periods of redemption beginning after June 30, 1991, but before 
 23.21  July 1, 1996, lands located in the Loring Park targeted 
 23.22  neighborhood on which a notice of lis pendens has been served, 
 23.23  and sold to the state at a tax judgment sale is one year from 
 23.24  the date of sale. 
 23.25     The period of redemption for all real property constituting 
 23.26  a mixed municipal solid waste disposal facility that is a 
 23.27  qualified facility under section 115B.39, subdivision 1, is one 
 23.28  year from the date of the sale to the state of Minnesota. 
 23.29     The period of redemption for all other lands sold to the 
 23.30  state at a tax judgment sale shall be five years from the date 
 23.31  of sale, except that the period of redemption for nonhomesteaded 
 23.32  agricultural land as defined in section 273.13, subdivision 23, 
 23.33  paragraph (b), shall be two years from the date of sale if at 
 23.34  that time that property is owned by a person who owns one or 
 23.35  more parcels of property on which taxes are delinquent, and the 
 23.36  delinquent taxes are more than 25 percent of the prior year's 
 24.1   school district levy. 
 24.2      Sec. 10.  [EFFECTIVE DATE.] 
 24.3      Sections 1 to 9 are effective for taxes levied in 1996, 
 24.4   payable in 1997, and thereafter.